One of the things I struggle the most with is achieving financial freedom. If you’re one of the many American’s trying to achieve the same (which I’m assuming you are)…then we are in the same boat. I’m always almost there, then I freak out (or I’m feeling good about my progress) and rack up charges on my credit card. As I’m swimming in beautiful new clothes and Louis Vuitton purses…I’m secretly feeling uneasy. It really doesn’t matter how much you make to achieve financial freedom. How much you spend is what can be detrimental to your personal finances.

To the tip….stop spending as much & start saving!

I do tons of research on personal financial advice…and I discovered the author David Bach. I really enjoy his books! The book, The Automatic Millionaire, teaches about how much you spend is what stops someone from being a millionaire. One of his clients made 40k a year, but paid himself first (savings/401k) and made it automatic (direct deposit), and was a millionaire and able to retire young. There is hope for us all! Moral of the story, take a % of your pay (preferably 10%) and have it automatically withdrawal from your pay into your 401k…and if your company matches, DON’T PASS UP FREE MONEY! If you don’t have a 401k, get a Roth IRA account. You don’t want to work until your 65 or 70, do you? This is what you need to do so you can retire and enjoy life!

Another tip….money market account.

Have you heard of this before? (Well I didn’t until I read David Bach’s book). I have been saving my money in a regular savings account for an emergency fund. The account barely yields interest and I thought this was standard. I never questioned it and the bank never told me there were other options. Knowledge is power! A money market account yields higher interest, and you don’t need a ton of money to start it either. You could have $1 or $2,500 to start an account. So start doing some research! It could be as simple as asking your bank if they offer a money market account and switching your savings to it. Don’t forget to shop the interest. See what you bank offers, other banks, and brokerage firms…then make your decision. David Bach recommends to have 3-24 months of expenses saved in your emergency account. No one plans on losing their job, but if you do, you can sleep at night knowing you are secure for “x” months. Or it can give you the freedom to tell you boss to shove it 🙂 Either way, the money market account is a smarter choice than your traditional savings account.

Earning financial freedom will not happen overnight. But it is important to really prioritize. Pay yourself first, make it automatic, and your emergency fund is only for emergencies (the new pair of shoes at the mall is NOT an emergency…crazy I know).